15 Dec 2010

Fletcher Building launches bid for Australian firm

2:54 pm on 15 December 2010

Fletcher Building has launched a multimillion-dollar takeover offer for Australian building and plumbing supplies company Crane.

Crane's brands include Tradelink, MasterTrade and Mico Metals, and it generated more than $A7.2 billion of revenue in 2010.

Fletcher Building already owns 15% of the company and is offering $A3.43 and one Fletcher Building share for the stock it does not own.

The offer values the company at $NZ982 million.

Fletcher Building says it is an attractive purchase, which it plans to fund through bank lending and issuing new shares.

It needs to buy 90% of Crane's shares for the deal to go ahead.

Shares in Fletcher Building fell 15 cents to $7.70 at midday on Tuesday.